Environmental Engineering Reference
In-Depth Information
Box 22.5
Components of a major scheme business case
• Strategic - to demonstrate that the scheme is consistent with and will contribute
to local, regional and possibly national objectives in transport and other relevant
areas
• Appraisal and value for money - to demonstrate the likely beneits and disbeneits
of the scheme against its likely costs
• Delivery - to demonstrate how the promoter will be able to deliver the scheme to
time and budget including a clear project plan, governance arrangements, plans
for stakeholder involvement and engagement and robust risk management plans
• Financial - to demonstrate that the scheme is based on sound costings, that the
promoting local authority is able to meet its own contribution, that any proposed
third-party funding is confirmed and that the authority is willing and able to
underwrite this element
• Commercial - to demonstrate a sound procurement strategy and a rigorous
approach to any private sector involvement.
Source: DfT 2007c Guidance on Major Transport Schemes para 2.7.3
whether the scheme remains a priority at the higher cost and what adjustments
might need to be made to the RFA programme to accommodate the increase.
(ibid. para 2.3.5)
All submissions should carry at least two options fully through appraisal - the
preferred option and a lower cost alternative. In addition light rail schemes should be
accompanied by bus-based alternatives and highway schemes by non-road-building
options directed at the same objectives, unless these are shown to be impracticable.
The Department's consideration of funding now follows a three-stage process, viz:
• Programme Entry
• Conditional Approval
• Full Approval.
Previously full approval was given before scheme procurement had taken place.
This could lead to a situation where the Department found itself committed to the
implementation of a scheme before its costs were finalised. Subsequent cost increases
would reduce the scheme's value for money and compromise the Department's ability
to fund an overall programme as planned.
The approval of a scheme for Programme Entry is not a commitment that funding
will be provided either at all, or at a particular time - either of these being subject
to further consideration of affordability within the RFA. However Programme Entry
status is intended to give the expectation of funding (provided there are no material
changes in cost or other features) in order that the promoting authority may apply for
any statutory consents required.
Conditional Approval is an intermediate stage after the necessary consents have
been obtained but before procurement takes place. It is a firm undertaking by the
Department that Final Approval will be forthcoming subject to a limited number of
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